Business and government: The new age of crony capitalism | The Economist - 1 views
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Rent-seeking” is what economists call a special type of money-making: the sort made possible by political connections. This can range from outright graft to a lack of competition, poor regulation and the transfer of public assets to firms at bargain prices. Well-placed people have made their fortunes this way ever since rulers had enough power to issue profitable licences, permits and contracts to their cronies.
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Capitalism based on rent-seeking is not just unfair, but also bad for long-term growth.
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It identifies sectors which are particularly dependent on government—such as mining, oil and gas, banking and casinos—
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